lincoln for life lcn1109-2059094 not fdic-insured not a deposit not insured by any federal...

LINCOLN FOR LIFE

LCN1109-2059094

Not FDIC-insured

Not a deposit

Not insured by any federalgovernment agency

Not guaranteed by anybank or savings association

May go down in value

Lincoln MoneyGuard® Reserve PlusA smarter alternative to self-insuringSM

Long-term care funding

The Lincoln National Life Insurance Company

For agent or broker use only. Not for use with the public.

For agent or broker use only. Not for use with the public. LCN1109-2059094

• The importance of long-term careexpense planning

• Lincoln Financial Life Stages Survey:Long-term care

• What is self-insuring, and why do clients prefer it?• Case studies

Agenda


of people over age 65 willrequire long-term care*70%

*DHHS, 2008. Statistics taken from www.longtermcare.gov. Administration on Aging: 202 619-0724.

The importance of long-term care expense planning


Source: LifePlans Long-Term Care Market Summary: Cost of Care Update 2010; www.LincolnFinancial.com; Research & Analysis; October 1. 2010. For a printed copy of the report, call 877 ASK-LINCOLN.

National average LTC costs in 2010

Assisted living

Nursing home

Home health aide

$3,369 per month$40,428 per year

Semiprivate room:$5,931 per month$71,175 per year

Private room:$6,570 per month$78,840 per year

$20.27 per hour

The importance of long-term care expense planning


Lincoln Financial Life Stages Survey —Lincoln understands how your clients feel

• Lincoln Financial Life Stages Survey:Long-term care

Available at www.LincolnFinancial.com, click Research & Analysis, and then click Featured Surveys.

Executive Summary for LTC Survey

LCN1109-2059094


Lincoln Financial Life Stages Survey —Lincoln understands how your clients feel

• Survey of a segment of the population

– Ages 40 to 70

– Household incomes and/or assets of $100K

• Survey results

– Americans know the long-term care risks

– They are unaware of their funding options

– Some think they have prepared sufficiently by self-insuring

LCN1109-2059094


of people will use savingsto pay for long-term care*

75%

* Lincoln Financial Group, “Long-term Confidence Study,” November 2010.

$60,000Long-term care costs could exceed

per year

LCN1109-2059094

Lincoln Financial Life Stages Survey —Long-term care

For agent or broker use only. Not for use with the public. LCN1109-2059094* Lincoln Financial Group, “Long-term Confidence Study,” November 2010.

How loved ones paid for the cost of their own long-term care

56% Used savings

Used money fromloved ones, family or friends32%

Sold their homes18%

Declared bankruptcy4%

Lincoln Financial Life Stages Survey —Long-term care planning


Why do clients self-insure?

Why not purchase a traditional long-term care product?



• Even though they have assets and investments, these clients treatlong-term care like any other potential expense.

• This gives them:– Control over their assets– No ongoing premium costs– Leftover assets for their heirs and

beneficiaries if they don’t need care



• Costs vary and can far exceed expectations• The market doesn’t care when you need LTC• Stress, threats to spousal income, family dynamics


A smarter alternative to self-insuringSM

• Asset control• More for their long-term care dollars • Benefits whether or not they need long-term care

clients want

Advantages


Lincoln MoneyGuard®

Reserve Plus policyCD


• Control• No premiums• Assets for children• Will this be enough to

pay for her long-term care expenses?

Figures based on 60-year-old female, healthy, nonsmoker.

• Control• No additional premiums

(one-pay policies)• Assets for children• LTC benefits worth

multiple times her premium payment

$100,000 purchase



Other Life insurance tocreate a legacy

Portion of savings

Cash savingsInvestments/retirement products

Long-term care benefitsIncome tax-free long-term

care reimbursementsDeath benefitIncome tax-free death

benefit for beneficiariesMoney-backguarantee

OR OR

Premium

LCN1109-2059094



LCN1109-2059094

* Beneficiaries can receive an income tax-free death benefit under IRC Section 101(a)(1).† Long-term care reimbursements are generally income tax-free under IRC Section 104(a)(3).

A money-back guarantee.At any time, your client can request a return of premium, upon full surrender of the policy. The amount received will be adjusted for any benefits paid and any loans and cash withdrawals, and it may have tax implications. The money back guarantee is included in the policy cost through the Enhanced Surrender Value Endorsement, which is available at issue on all single premium policies and flexible premium policies for ages 35 – 65. See Endorsement for complete terms and conditions.

An income tax-free death benefit.When the client dies, the policy pays an income tax-free death benefit to their beneficiaries.*

Long-term care benefits.If the client needs long-term care, the policy can provide income tax-free reimbursements for qualified long-term care expenses.†

OR

OR

Your client can purchase a Lincoln MoneyGuard® Reserve Plus policy with a portion of cash reserves. The policy remains an asset in their portfolio, and it offers:



CD Lincoln MoneyGuard®

Reserve Plus

1. Control2. No additional premium3. $ to kids

$100,000

2.8% after-tax return over 18

years

$164,390 (30% tax bracket)

Risk = Enough $ for LTC?

LTCLTC/ /

1. Control2. No additional premium3. $ to kids

Risk = Only get $ back

$500,298Income tax-free long-term

care reimbursements$6,949/month$83,383/year

$166,766Income tax-free death

benefit for beneficiaries

$100,000

OR

LCN1109-2059094



• The policy is an asset inthe client’s portfolio.

• The client appreciates asset leverage — more for the LTC dollar.

• The client gets benefits — whether ornot long-term care is needed.

• The client has a money back guarantee.1

1 Through the Enhanced Surrender Value Endorsement available at issue on all single premium policies andflexible premium policies for ages 35 – 65. See Endorsement for complete terms and conditions.



• No deductible or elimination period• Premiums never increase• Tax advantages• Choice of care setting• International benefits


Eligibility for reimbursement of qualified long-term care expenses

• The insured is certified as chronically ill by a Licensed Health Care Practitioner.

• Care is provided under a care plan prescribed by a Licensed Health Care Practitioner.

• Reimbursement is for covered expenses up to the maximum benefit specified in the policy.


LCN1109-2059094


Client categories

Retired clients or those nearing retirement (Ages 50–75)

High net worth individuals (Ages 35–80)

Older clients (Ages 70–80)

Clients who have seen the impact of long-term care in their families (Ages 35–80)

Single females (Ages 50–80)

Corporate cash(Ages 35-65)

LCN1109-2059094


Hypothetical case study: Protecting retirement income

• Jeffrey, age 67 and Anne, age 62 • Healthy, nonsmokers

Concern

• Jeffrey wants to help protect Anne’s retirement incomeshould he need long-term care.

Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender (except in Montana, where gender does not affect rates or benefits).

Recommendation

• Jeffrey purchases a $150,000 single premiumLincoln MoneyGuard® Reserve Plus policy with a two-year Convalescent Care Benefits Rider (CCBR) and a four-year Extension of Benefits Rider (EOBR).

LCN1109-2059094


Hypothetical case study: Protecting retirement income


His maximum available benefit is $92,250 per year for six years ($7,687 per month).

OtherLife insurance tocreate a legacy

Portion of savings

Cashsavings

Investments/retirement products


care reimbursements$184,499Income tax-free death

benefit for beneficiaries$150,000

Money back guarantee

$150,000Premium

OR OR

LCN1109-2059094


Hypothetical case study: Getting more for the LTC dollar

• Gloria, age 62• Healthy, nonsmoker

Concern

• Gloria wants to maintain her lifestyle, leave money toher beneficiaries, and establish a scholarship.

Recommendation

• Gloria purchases a $300,000 single premiumLincoln MoneyGuard® Reserve Plus policy with a two-year Convalescent Care Benefits Rider (CCBR) and a four-year Extension of Benefits Rider (EOBR).


LCN1109-2059094


Hypothetical case study: Getting more for the LTC dollar


Her maximum available benefit is $236,985 per year for six years ($19,749 per month).


Portion of savings

Cashsavings


$300,000Premium

$1,421,910Income tax-free long-term




OR OR

LCN1109-2059094


Hypothetical case study: Having no deductible/elimination period

• Joyce, age 76• Healthy, nonsmoker

Concern

• Joyce wishes she had prepared a long-term careplan earlier. She’s concerned she may need care due toa family history of Alzheimer’s disease.

Recommendation

• Joyce purchases a $100,000 single premiumLincoln MoneyGuard® Reserve Plus policy with a three-year Convalescent Care Benefits Rider (CCBR) and a two-year Extension of Benefits Rider (EOBR).


LCN1109-2059094


Hypothetical case study: Having no deductible/elimination period


Her maximum available benefit is $38,533 per year for five years ($3,211 per month).

OtherLife Insurance tocreate a legacy

Portion of savings

Cashsavings


$100,000Premium





OR OR

LCN1109-2059094


Hypothetical case study: Planning ahead to keep up with inflation

• Dan, age 50• Healthy, nonsmoker

Concern

• Dan wants to protect his children from the stressof managing his LTC expenses.

Recommendation

• Dan purchases a $100,000 single premiumLincoln MoneyGuard® Reserve Plus policy with a two-year Convalescent Care Benefits Rider (CCBR) and a four-year Extension of Benefits Rider (EOBR).

• Dan adds the 3% Simple Inflation option to keep pace with rising LTC costs.


LCN1109-2059094


Hypothetical case study: Planning ahead to keep up with inflation


OtherLife Insurance tocreate a legacy

Portion of savings

Cashsavings


$100,000Premium





OR OR

At age 75, his maximum available benefit is $131,676 per year for six years ($10,973 per month).

Values are subject to change if any cash withdrawals or loans are taken or if any benefits are paid prior to age 75.

LCN1109-2059094


Hypothetical case study: Helping to protect the portfolio

• Nancy, age 60• Healthy, nonsmoker

Concern

• Nancy is concerned that she may need long-term care withinthe next few years, but she thinks she has enough setaside to cover expenses.

Recommendation

• Nancy purchases a $100,000 single premiumLincoln MoneyGuard® Reserve Plus policy with a two-year Convalescent Care Benefits Rider (CCBR) and a four-year Extension of Benefits Rider (EOBR).


LCN1109-2059094


Hypothetical case study: Helping to protect the portfolio


Her maximum available benefit is $83,383 per year for six years ($6,949 per month).


Portion of savings

Cashsavings


$100,000Premium





OR OR

LCN1109-2059094


Hypothetical corporate case study: Deferred compensation of LTC funding

• Vince, age 60• Healthy, nonsmoker

• Vince and his sons own an engineering firm organized as a “C” corporation. He would like to have a valuable fringe benefit of LTC funding that also provides tax benefits for his business.

Recommendation

• The corporation purchases a $100,000 single premiumLincoln MoneyGuard® Reserve Plus policy for Vince with a two-year Convalescent Care Benefits Rider (CCBR) and a four-year Extension of Benefits Rider (EOBR).

Concern


LCN1109-2059094


Hypothetical corporate case study: Deferred compensation of LTC funding

Hypothetical example only. Benefit amounts will vary by client’s age, health status, and gender (except in Montana, where gender does not affect rates or benefits).His maximum available benefit is $72,131 per year for six years ($6,011 per month).

OtherBalance sheet

Portion of savings

InsuranceBusiness assets

$100,000Premium





OR OR

LCN1109-2059094


• Streamlined underwriting• Experience in claims paying• Experience of Lincoln

Why Lincoln MoneyGuard® Reserve Plus

LCN1109-2059094


Next steps

• Identify prospects with cash reserves• Position the product• Follow-up• Submit

LCN1109-2059094


A universal life insurance policy with a Convalescent Care Benefits Rider (CCBR) that accelerates the specified amount of death benefit to pay for covered long-term care expenses. An Extension of Benefits Rider (EOBR) to continue long-term care benefit payments after the entire specified amount of death benefit has been paid. The money back guarantee is featured through the Enhanced Surrender Value Endorsement (ESVE), included in the policy cost for all single premium policies and for flexible premium policies for issue ages 35–65. The additional surrender benefit provided will be adjusted by any loans/loan interest/loan repayments, withdrawals taken, or claim payments made. The cost of riders will be deducted monthly from the policy cash value.

Issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, on Policy Form LN870 with the Convalescent Care Benefits Rider (CCBR) on Rider Form LR870, an optional Enhanced Surrender Value Endorsement (ESVE) on Endorsement Form B10465F, an optional Extension of Benefits Rider (EOBR) on Rider Form LR871, and an optional Nonforfeiture Benefit Rider (NFO) on Rider Form LR872.

All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.

The policy and riders have exclusions, limitations, and/or reductions. Products and features, including benefits, terms, and definitions, may vary by state. Not approved for use in New York.

©2011 Lincoln National Corporation

www.LincolnFinancial.com

Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.Affiliates are separately responsible for their own financial and contractual obligations.

9/11 Z02 Order code: MGR-ADV-PPT001

Not FDIC-insured

Not a deposit

Not insured by any federalgovernment agency

Not guaranteed by anybank or savings association

May go down in value

Important disclosures. Please read.

LCN1109-2059094

Contact

LCN1101-2049896

Diversified Ins. Brokers800-533-5969 Toll Free770-662-8510 Local770-662-0516 Faxwww.DiversifiedIns.comMargaret [email protected] [email protected] [email protected]

lincoln for life lcn1109-2059094 not fdic-insured not a deposit not insured by any federal...

Documents